Social Commerce Creates New Customer Relationships

Question 1

Assess the people, organization, and technology issues for using social media to engage with customers.

Answer

To most of the people used facebook and twitter to keep touch with friend and to let them learn and
know what there are doing. Social media like Facebook and Twitter have transformed the way some
businesses think about advertising. For all type of companies, facebook and twitter has become
powerful tool for engaging customers. Companies can use facebook and twitter to make trade off,
promotion, and services to make a business without spend significant cost. For service, location based
on business such as gourmet food trucks can tweet their current location to loyal followers and fans.
Appointment-based businesses can easily tweet or post cancellations and unexpected openings. Larger
companies of all sizes have an opportunity run sweepstakes and promotions and other all size of
companies have an opportunity to shape the perception of their brands and to solidify relationships
with their customers. Companies have running out that capitalize on the social media feature if
Facebook to achieve greater visibility. For example, facebook have feature the ability to like a brand,
send a virtual gift, answer a pool question, and instantly stream information to your news feed. Twitter
has developed many new offering like promoted tweets and promoted trend. These features give
advertisers the ability to have their tweets displayed more prominently when twitter users search for
certain keyword.

Question 2

What are the advantage and disadvantage of using social media for advertising, brand building, market
research and customer service?

Answer

Advantage/disadvantage:

The advantage of advertising in social media marketing is cost-related. The majority of social media web
sites are free to access, create a profile and post information. The advantage of reaching your targeted
market was little or no cash investment wanted, and the audience wanting your information was
voluntarily joins and follows you. The viral nature of social media means that each person who reads
your posts has the capability to spread the news wide within his own network, so information can reach
a large number of people in a short time.

That result shows just how highly CMOs (chief marketing officer) rate the brand building advantage of
social media. Chief marketing officer (CMO) is a corporate executive responsible for marketing activities
in an organization. Considering the size of the potential market on social media channels like Facebook
and Twitter, it’s an obvious brand opportunity. Brand building was the original reason for businesses to
join social media. The math was basic but they produce favorable results 900 million people on
Facebook, even accessing 0.001% of that would provide a huge opportunity. Even though businesses
have identified other advantages of social media, brand building is still a key part of the plan. The
research provided further evidence of this as over 80% of CMOs agree that social marketing can have a
measurable impact on brand awareness and brand loyalty. For example, Levi’s was one of the first
national brands to use Facebook and twitter to allow customer to socialize and share their purchases
with friend. The Levi’s Facebook page have 500,000 ‘like’ message posted by friends sharing their
favorite jeans.

The disadvantage of in social media marketing is updating the social media accounts take time and
effort. A senior person with knowledge about the company and products should handle your social
media presence, and the cost in time means the media is not completely free. It is ongoing work to find
new angles about your products continually and to post and re-post information. The information is only
visible for a short time before newer posts replace it. In addition, publishing obvious advertising copy is
unacceptable in the social media world, therefore you must present the information in the form of
conversation or you will lose followers.

Question 4

Should all companies use facebook and twitter for customer service and advertising? Why or why not?
What kinds of companies are best suited to use this platform?

Answer

In my opinion, all type or size company should use facebook and twitter for customer service and
advertising. The company can use social media to provide good customer service through e mail, special
message, and private password, web access to special areas for top customers to their customer. Why?
Because now a day most of the companies make business in sell its products or services to customers
over the internet from facebook and twitter. The results show that which companies use social media
was increase their sale and gain more profit. Companies using facebook and twitter to advertising and
provide customer service to engage customers. These critically help their companies to gain profit. For
example levi’s, within the first week of its share campaign, levi’s received 4,000 ‘like’. The company
began using twitter in 2010 by creating a ‘levi’s guy’ to interest customers. He has over 6,000 followers
and is responsible for responding to queries and engaging in conversations about the levi’s brand on
twitter. In 2011, the company creates a personalized friend store where shoppers can see what their
friends ‘like’ and brought. These not only show that the people who ‘like’ the page, it is clearly show that
the levi’s company demand was increase drastically. When the demand increase the company was
advantage in gain high profit. Even the facebook and twitter posting was always get complain but
advertiser may still benefit.

Chapter 9 Case Study - Social Commerce Creates New Customer Relationships

Question 1 : Assess the people, organization, and technology issues for using social media to engage with customers.

As the social media such as Facebook, Twitter has become powerful tools for companies of all shapes and size to engage with
customers. They can inform the customers about their latest update in order to keep good relationship between them.
As example, location-based businesses can tell their current location to the customers via Twitter or Facebook and also
appointment-based businesses can easily tweet or post cancellation and unexpected opening. Larger companies run sweepstakes,
promotion and advertisements that capitalize on the social media features in order to achieve greater visibility.

Instead, they have an opportunity to shape the perception of their brands and to solidify relationships with their customers. One of
the popular brands products; Levi’s has used Facebook and Twitter to allow consumers to socialize and share their purchases to
friends.

The all-purpose retailer Best Buy use social media to answer user question and respond to complaints. Best Buy’s social media
followers who generate feedback on social networks and related sites, and these data gathered are converted into useful
information. The company uses that information to gauge the success of promotions and the impact of advertising campaigns.
Rosetta Stone has used Facebook’s targeting capabilities to determine which types of people responds to the various ads it has
created. 

Question 2 : What are the advantages and disadvantages of using social media for advertising, brand building, market research,
and customer service?

There are a lot of advantages that will benefits all that are using social media for advertising, brand building, market research, and
customer service for their companies. As using the social media such an efficient way to engage with the customers, the
advantages of it hugely affected the productivity and performance of a particular company.

On top of that, the social media features of Facebook ads, the ability “Like” a brand, send a virtual gift, answer a poll question, or
instantly stream information to your news feed and this will leads to achieve greater visibility. In addition, Facebook allow
advertisers to use features “Like” posts by customer’s purchases and share with their friends. This will benefit the advertiser to
improve their firm to gain more buyer or customers of their products. Moreover, by serving Facebook ads only to the group of
people to whom they were most attractive, Rosetta Stone experienced a tripling in advertisement performance.

Twitter has developed many offerings to interested advertisers, like Promoted Tweets and Promoted Trends. These features give
advertisers the ability to have their tweets displayed more prominently when Twitter users search for certain keywords. The use
of Twitter as intermediaries is to interest customers. A person that is in charge to handle company’s account Twitter is
responsible for responding to queries and engaging in conversations about the brand or their product. So then, the good
relationship between the company and customers can be build and this will leads to a better performance and reputation of the
company.

Nevertheless, there are several disadvantages of using the social media. As the sharing information among the consumers or
customers is unlimited, there are a few bad impacts that will affect them. Information with no limit will lead to cause of
infringement of private information among individuals. So then, the problem of securing one’s information cannot be preventing.
This will cause the danger of one’s personal information and security of themselves.

As like what Starbucks learned, the social media can be unpredictable and not always beneficial. The campaign that had been
runs by Starbucks is backfired. At the urging of anti-Starbucks protesters, users flooded Starbuck’s Twitter feed with pictures of
employees and protesters holding signs criticizing Starbuck’s labor practices. Because of this problem, Starbucks faced a big
problem that must be solving in order to bring back their good names.

Question 3 : Should all companies use Facebook and Twitter for customer service and advertising? Why or why not? What kinds
of companies are best suited to use these platforms?

In this globalization era, sharing information is spread all over the world with no limit. This phenomenon is spreading and all
people are trying to be in the same level among others to achieve successful. So the use of social media likes Facebook and
Twitter for customer service and advertising are very important for any kinds of company. All companies should use social media
as a tool to improve their company's performance and productivity instead of to make possible of company’s performance and
smoothing the works of promoting progress. Therefore, the company is a step forward to be the best organization to promote and
make their product as one of the mostly chose by consumers in other words, as a ‘product champion’.

There are a few kinds of companies are best suited to use these platforms such as the company are selling mass product. As
example, company of shoes is very important to use social media to improve their communication between the customers. Social
media likes Facebook and Twitter are usable for the company to deliver their product information to customer faster. Feedback or
respond from customers is one of the methods for the company to gather data about their product’s response and if there is any
possible solutions are needed based on what the customer complaints. Thus, this problem could be overcome and the
performance of the company can be improved. Besides that, social media is use to link the customer and the company to know
what best practice are important for the firm to increase the connectivity.

Chapter 9: Social Commerce Creates New

Customer Relationships
1) Assess the people, organization, and technology issues for using social media to engage with
customers.

Answer:
We can assess the people, organization, and technology issues using social media such as Facebook and
Twitter to engage with customer.

  Powerful tolls for engaging customer and asses the people, organization, and technology issues.
 Companies are rolling out ads that capitalize on the social media features of Facebook to
achieve greater visibility.
 Twitter has developed many new offerings to interested advertisers, like Promoted Tweets and
Promoted Trends.
 Facebook targeting capabilities to determine which type of people respond to the various ads it
has created.
 Many companies are running online ads that focus less on pitching their product than on
promoting their Facebook pages and Twitter accounts.
 The ads feature menu  tabs and allow users to click within the ad to see a brand’s Twitter
messages or Facebook wall posts in real time, or to watch a brand’s video content from YouTube-all
within the Web page where the ad appears.
 Even if the Facebook or Twitter postings in ads show brands apologizing about missteps or
customer complaints, advertisers may still benefit. 

2) What are the advantage and disadvantage of using social media for advertising, brand building,
market research, and customer service?

Answer:
Advantages:
 Building Brand Awareness
One of the most obvious reasons for using Social Media Marketing is to build brand awareness and it
certainly does if used correctly.
 Reach a Large Audience
Using social media to market our business online will without a doubt help us reach a larger audience. In
a way, the more people we reach, the better brand awareness we have but with social media, there is a
lot of noise. We need to make sure we use a tool like Hoot suite so we can eliminate all of the noise and
focus on reaching the people who want to engage with us.
 Great for SEO

Social Media or even more specific, Google+ is great for boosting our SEO. Google is picking up on
how much activity each business is doing on social media and will rank our business accordingly.
The more active and fresh content we are posting on our social media accounts, the better our
business will rank on Google and it really is, as simple as that.

 Cost Effective
Social Media Marketing doesn’t cost you a penny, unless you want it to. You can market on Twitter,
Facebook, Google+, Pinterest and any other social network for free. If we want to run competitions
or use a few select third party tools, we may end up have to pay a small fee but on the whole, social
media marketing is very cost effective.
 Become a Thought Leader
Using Social Media to market our business can make us a thought leader in our selected field.

Disadvantages: 
 Understanding on how it works
We need to understand how social media works, when and how to use it and which channels to focus
on depending on our end goal of using social media in order to get its full effects.
 Commits illegal crime
Social media may open possibility for hackers to commit illegal crime such as fraud, spam and virus
attacks. People falling prey to online scam may also increase, resulting in data or identity theft.
 Viral social disadvantage
This may damage one’s reputation. The wrong online brand strategy could put us on this.
 Negative effects on worker productivity
Results in lost productivity and employees may use social media to attack the company’s reputation.
Instead of working in their time of work, they can waste such valuable time using social media channels
such as Twitter and Facebook. This may result in negative comments from employees about the
company or potential legal consequences if employees use these sites to view objectionable, illicit or
offensive material.
 Distraction
Most people who suffer from this are students. Instead of doing their homework’s they tend to fail their
academic endeavours because of using social media in the wrong way.
 Serious detrimental outcomes on individual’s health
When social media is used in a wrong way, it may have a negative effect on both mental and physical
health of individual.

3) Should all companies use Facebook and Twitter for customer service and advertising? Why or why
not? What kinds of companies are best suited to use these platform?

Answer:

            Now days, people are not call up a company and complain or tell their feedback. Now, they are
more likely to head to their smartphones or computers to tell the world how a product is. That’s why
social media platform like Facebook, Twitter is important for customer service.

Example of company which use Twitter for Customer service:

            JetBlue Excels in Responsiveness. Airline delays are one of the most common causes of customer
frustration. JetBlue ensures they’re responsive to their customers because they understand it’s
important for continued customer loyalty. They engage with happy customers, but they also respond to
and help frustrated customers as quickly as possible.

JetBlue is to be extremely responsive to customers mentioning their brand. Whether they send
public a reply or a private DM to answer a question, they are quick to interact. As seen in the
picture above, they reached out to their frustrated customer within the hour.
            Social media is a channel where customers get quick responses. Social media platform
help companies to response quickly to customer. Many companies dedicate full-time employees
to the task of responding to customers and potential customers on social media. Social media
help to satisfy customer needs.
Moreover, social media help find all this things.
 Social Listening (Listening for conversations about your company, competitors or other
topics of interest)
 Social Conversation (Finding and responding to conversations online – engaging with
others in social media)
 Social Marketing (Launching and running campaigns and promotions in social media)
 Social Analytics(Measuring and analyzing results of social media efforts across various
platforms)
 Social Influencer (Identifying and engaging with influencers that are relevant to your
company or industry)
               Social media platform is cheaper than traditional marketing and advertising
methods. Promote a product using social networking sites by determining where their
customers and potential customers are, and getting their product visible on those sites.